Global markets are in turmoil as President Trump’s surprise tariff hike and disappointing tech earnings send shockwaves through Asia, Europe, and the U.S. Investors are scrambling to reassess positions amid the sharpest single-day declines in months.
How Did Trump’s Tariffs Impact Global Markets?
Late Thursday, the U.S. announced new tariffs ranging from 10% to 41%, including a 40% penalty on rerouted goods. This move triggered an immediate market sell-off:
- Japan’s Nikkei 225 fell 0.59%
- South Korea’s KOSPI plunged 3.61%
- Hong Kong’s Hang Seng dropped 0.61%
- Australia’s ASX 200 lost 0.89%
Which Asian Markets Were Hit Hardest?
Asian markets bore the brunt of the initial impact:
| Market | Decline |
|---|---|
| Shanghai Composite | 0.46% |
| India’s Nifty 50 | 0.29% |
| Offshore Yuan | 0.7% weekly drop |
What’s Driving the Market Sell-Off?
Three key factors are compounding the global market reaction:
- Uncertainty about tariff enforcement
- Weak tech earnings reports
- Upcoming U.S. jobs data
Will the Market Pressure Continue?
Analysts warn the sell-off may persist due to:
- No immediate policy reversal expected
- Supply chain disruption fears
- Strong dollar putting pressure on currencies
The synchronized nature of this market reaction highlights how interconnected global financial systems have become. Investors should brace for continued volatility as these economic headwinds show no signs of abating.
Frequently Asked Questions
How much did Asian markets drop?
Major Asian indices fell between 0.23% (Hang Seng Tech) and 3.61% (KOSPI), with Japan’s Nikkei down 0.59%.
Which tech stocks were most affected?
Tokyo Electron plunged 17%, while SK Hynix fell 5.12%. Apple bucked the trend with a 2% rise after strong earnings.
What are the new U.S. tariff rates?
The new tariffs range from 10% to 41%, with an additional 40% penalty on goods rerouted to avoid existing tariffs.
How did European markets react?
London’s FTSE 100 dropped 0.2%, Germany’s DAX fell 0.6%, and France’s CAC 40 remained flat at opening.
